Finance-Difference in Risk & Exposure

This query is : Resolved 

12 June 2008 What is exactly the difference between "Risk" & "Exposure"???

19 June 2008 Risk is the possiblity of loosing and

Exposure is the extent to which it can adversely affect.

Risk is inherent and Exposure is not so..

24 June 2008 Risk meaning you have undertaken a risk to loose your money etc.
While exposure decides the scope upto which you can take risk.
For example in shares, the DP offers you an exposure of say, 4 times of your limit but how much of this. risk should be taken is upto you




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